Employment Insurance (EI) Claims Hit Markets throughout Canada
Employment Insurance (EI) claims throughout Canada continued to climb in August, going up 4.9% from July to a total of 242,400 in the month. This represents an 8.7% percent increase over the claims that were filed in August 2014. These claims show how many people who could start getting unemployment benefits from the government.
The province with the biggest increase was Alberta, which saw a jump of 14.8% from July. The Alberta economy is beset by the drop in oil prices. However, Ontario (7%), which has more people than any other province, also saw a substantial increase. Newfoundland and Labrador saw an increase of 4.5%, while BC (2.8%), Quebec (2.6%), Saskatchewan (2.5%) and New Brunswick (1.3%) also saw increases. Manitoba saw no change, Nova Scotia saw a drop of 1.3%, and Prince Edward Island saw a drop of 3.8%. August saw the total number of people on regular benefits drop by 7,900 from July to a total of 536,800. However, compared to August 2014, the number of recipients has gone up by 7.1% (35,600).
What this means for Canadians is that the economy is still in a bit of a flux, and that the recovery from the housing collapse in 2007 and 2008 remains shaky. While most of the nation is enjoying the fact that gasoline prices are low, the fact that Alberta’s economy relies on oil production and development means that jobs are particularly scarce there while prices remain down. The likelihood of oil price increases in the short-term future is low, given the success of “fracking” methods in aiding exploration.
This doesn’t mean that your financial future needs to be at risk, though. Just because you’ve been laid off and have had to apply for EI doesn’t mean that you have to let your credit rating go into the tank. Even if you haven’t been putting money into an emergency savings account, if you’ve been making mortgage payments for a number of years, you are living in a “savings account” that lets you borrow against it at a cheaper interest rate than unsecured debt, particularly of the credit card variety. Don’t get caught with revolving credit lines and their high rates when there are other solutions available.
If you are a homeowner who is on EI or you are in between jobs, and you have enough equity in your home, then consider a short-term private mortgage to help you make ends meet until you find that next job. Get in touch with one of the private mortgage specialists at Amansad Financial to see if this is the right solution for you.